Unexpected expenses can arise at any time, making it essential for Indian households to establish an emergency fund. This fund should ideally cover three to six months of essential expenses, such as groceries, rent, and utilities, to prevent falling into debt during crises. Financial experts recommend maintaining this fund in a liquid savings account, separate from daily savings, to avoid the temptation of using it for non-emergencies. Regular contributions, even as low as ₹1,000 to ₹5,000 per month, can help in building a robust emergency fund over time. It's important to prioritize rebuilding the fund immediately after any withdrawals to ensure continued financial stability. As personal circumstances change, households should reassess their emergency fund needs to adapt to growing income and expenses. Following these guidelines can protect families from unexpected financial shocks and promote long-term economic security.